FINANCIAL STATEMENTS
STRATEGIC REPORT
GOVERNANCE
Awards will be made over shares with a face value of 200% and 175% of salary in 2022 to the CEO and CFO respectively. The awards made in 2022 will be subject to the measures below, calculated over the three financial years to 31 December 2024, and will be subject to a further two year post-vesting holding period. Performance measures and targets applying to the 2022 LTIP awards Measure Weighting Target Vesting Underlying Organic Capital Generation 25% Below £90m 0% Threshold: £90m 25% Between threshold and maximum Between 25% and 100% on a straight-line basis Maximum: £130m 100%
LONG TERM INCENTIVE PLAN (“LTIP”)
10%
Below £300m
0%
ESG - Investment into ‘Sustainable Assets’ (as developed in partnership with Sustainalytics)
Threshold: £300m Between threshold and maximum
25% Between 25% and 100% on a straight-line basis
Maximum: £750m
100%
Below 8% p.a.
0%
35%
Return on Equity
Threshold: 8% p.a. 25% Between threshold and maximum Between 25% and 100% on a straight-line basis Maximum: 12% p.a. or above 100%
Belowmedian
0%
30%
Relative TSR vs FTSE 250, excluding Investment Trusts
Median
25%
Between median and upper quartile
Between 25% and 100% on a straight-line basis
Upper quartile or above
100%
SUMMARY OF THE DIRECTORS’ REMUNERATION POLICY The Directors’ remuneration policy was developed taking into account the principles of the UK Corporate Governance Code, guidelines frommajor investors and guidance from the UK regulators, the PRA and the FCA, on best practice. The existing policy was approved by shareholders at the AGM held on 14 May 2020 and is available within the Directors Remuneration Report of the 2019 Annual Report and Accounts. Components of remuneration The tables below summarise the Directors’ remuneration policy for Executive Directors and Non-Executive Directors. The full Directors’ remuneration policy, as approved by shareholders, is available at www.justgroupplc.co.uk . Executive Directors
Element
Purpose and link to strategy
Operation (including framework used to assess performance)
Opportunity
Provides a competitive and appropriate level of basic fixed pay to help recruit and retain Directors of a sufficiently high calibre. Reflects an individual’s experience, performance and responsibilities within the Group.
Set at a level which provides a fair reward for the role and which is competitive amongst relevant peers. Normally reviewed annually with any changes taking effect from 1 April. Set taking into consideration individual and Group performance, the responsibilities and accountabilities of each role, the experience of each individual, his or her marketability and the Group’s key dependencies on the individual. Reference is also made to salary levels amongst relevant insurance peers and other companies of equivalent size and complexity. The Committee considers the impact of any basic salary increase on the total remuneration package.
In normal circumstances, base salaries for Executive Directors will not increase by more than the average increase for the broader employee population. More significant increases may be awarded from time to time to recognise, for example, development in role or a change in position or responsibilities.
BASE SALARY
105
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